Alaska Governor Freezes Hiring
Because of Prudhoe Bay Shutdown

MATT VOLZ / AP 9aug2006

Add up a few problems like BP's poor maintanence practices, AK's lack
of sales and personal taxes, and global warming, and that's just how fast
Murkowski's scam falls apart — a couple of months.

As if to add insult to injury, Murkowski
urged legislators to support a plan he developed with North Slope
producers to build a $25 billion natural gas pipeline to Canada.

Most of what Americans take for granted relies on similar of oily
variables. Poor long-range planning is the hallmark of our leaders.
There are lots more of them just like Murkowski. We are constantly told
that nothing is gained without chances being taken. So now, the chickens
are coming home to roost.

On our southern border, Mexico's
energy problems right now are affecting the US. Oil drilling and
the Trans-Alaska Pipeline are two really bad ideas.

JUNEAU, Alaska — Gov. Frank Murkowski imposed a state hiring freeze
Wednesday because of the millions of dollars in revenue Alaska is losing as a
result of the Prudhoe Bay oil field shutdown, and said he would support hearings
into BP's maintenance practices. The governor also said he would direct Alaska's
attorney general to investigate whether the state could hold the oil giant fully
accountable for the state's losses.

Earlier this week, BP said it would shut down Prudhoe Bay — the biggest oil
field in the nation — because of a small leak and severe pipeline corrosion.
Energy officials have said the pipeline repairs are likely to take months,
curtailing Alaskan production into next year.

The expected loss of 400,000 barrels per day at today's oil prices means the
state is losing about $6.4 million a day in royalties and taxes, Revenue
Commissioner Bill Corbus said.

The state receives 89 percent of its income from oil revenue; Alaska has no
state sales tax and no personal income tax. The Prudhoe Bay shutdown will cut in
half Alaska's total oil production and the resulting revenue.

Without money coming in from Prudhoe Bay, Alaska's government can operate for
only about two months before going into the red, Curbus said.

"BP must get the entire Prudhoe Bay back up and running as soon as it is
safely possible," Murkowski told a joint session of the state Legislature.

BP, the world's second-largest oil company, said it will replace 16 miles of
pipeline that carries oil from Prudhoe Bay to the 800-mile Trans-Alaska
Pipeline. The Prudhoe Bay field accounts for 8 percent of U.S. domestic output.

Because oil demand is so high and the nation's petroleum supplies are so
tight, the shutdown has already driven oil prices up and could mean higher
prices at the gasoline pump as well.

Three Democratic legislators released a letter to Murkowski calling on the
governor to hold hearings and have BP officials explain under oath what they
did, or failed to do, to maintain Prudhoe Bay's pipelines.

"Absent hearings, during which witnesses are sworn under oath and
relevant documents are subpoenaed, the public may never learn the truth,"
the lawmakers said.

Murkowski said he would support the idea and "I fully expect hearings to
occur."

Murkowski questioned why BP abruptly shut down the entire Prudhoe Bay field
after finding a leak of only four to five barrels.

"What did BP learn last Sunday that it did not know previously that
would cause BP to take such precipitous action?" Murkowski asked. He
complained also that the state was not consulted before the decision was made.

The governor also urged legislators to support a plan he developed with North
Slope producers to build a $25 billion natural gas pipeline to Canada.

"I would ask all of you to please pull together with our administration
and the producers so we can work as Alaskans through the challenge ahead,"
he said. "We simply have to get it done."

It appeared unlikely the governor would get support for the contract before
lawmakers end their special session Thursday.